|Changes on the gas curve reflected the afternoon rise in oil prices, following the release of the EIA report. Prior to this increase in Brent, contracts generally traded flat on the far-curve with little change to long-term fundamentals. Meanwhile, movement on the prompt was bearish with warmer temperatures weighing on demand levels, combined with an improvement in Norwegian flows into the UK.
|Strengthening gas and oil markets supported power contracts on Wednesday, although a higher renewable generation forecast helped to restrict any upward movement on the prompt, assisted by continued warm weather today. The rest of the curve moved higher despite the Pound once again strengthening against the Euro, with temperatures expected to drop over the weekend and next week.
|Gas prices continue to take direction from the oil market, with Brent posting further gains overnight. Norwegian flows via the Langeled pipeline also fell this morning and demand levels are set to increase over the coming days due to cooler temperatures; further supporting contracts on the near-curve. However, warmer temperatures are expected to return before the start of May and the LNG outlook is comfortable, restricting some of the gains.
|There is little change on the power curve this morning with gains observed, front to back. Rising gas and oil contracts continue to be the main market drivers, although an expected rise in consumption next week due to cooler weather has also offered support.
Brent 1st-nearby prices recorded a strong gain yesterday, hitting their highest point this year so far of $46.13/b. The EIA report contributed to the bullish sentiment as it displayed a drop in US oil output, while the Head of the IEA also fuelled optimism with his comments in regards to tackling the oversupplied market.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased - closing at 32.44ppt and £35.35/MWh, respectively.
Today's prices can also be found in an easy to read table on our 'current UK energy price' page.
Click graph to enlarge